Supply-siders feel that high levels of government spending:
A. assist private sector investing by creating infrastructure.
B. have no impact on private sector investment.
C. complement private spending.
D. cause private sector investment to decline because of crowding out.
Answer: D
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A leftward shift of the BP schedule co the result of an
a. exogenous rise in import demand. b. exogenous fall in export demand. c. increase in the foreign demand for capital. d. increase in the foreign interest rate. e. both a and b.
Suppose the demand for Pepsi is qp = 50 - 2pp + 1pc. The firm faces a constant marginal cost of m, and denotes the price of Coke
Assuming Bertrand behavior, derive Pepsi's best-response function and explain how the firm changes price in response to changes in its own marginal cost and changes in Coke's price.
Data on world reserves of minerals, gathered by Blackman and Baumol, show that between 1950 and 2000 . production of most minerals
a. greatly exceeded the reserves available in 1950. b. declined as depletion occurred. c. greatly reduced the reserves available in 2000. d. was limited to a fraction of the reserves available in 1950.
Refer to the above graph. A decrease in supply would best be reflected by a change from:
Point 2 to point 1 Point 3 to point 6 Point 5 to point 2 Point 5 to point 1